RECONCILIATIONS OF NET SALES

3 Months Ended

Jun. 30, 2013

Notes to Financial Statements

RECONCILIATIONS OF NET SALES

12. RECONCILIATIONS OF NET SALES

In accordance with FASB ASC 605-50, the Company classifies the following allowances to customers as reductions of sales:

	Years Ended December 31,				Six Months Ended June 30,
	2011		2012		2012		2013
Gross sales	$	2,571,977	$	1,787,947	$	1,308,201	$	122,148
Less:
Sales discounts		52,075		26,826		24,279		2,383
Credits		-		5,449		3,754		507
Returns and allowances		379		-		9		-
Trade spending		945,569		676,943		526,334		26,222
Slotting fees		152,000		50,000		29,000		-
Net sales	$	1,421,954	$	1,028,729	$	724,825	$	93,036